SkyePharma renegotiates convertible bonds

SkyePharma has announced the successful renegotiation of its convertible bonds and related fundraising.

The company set out the proposals for renegotiated terms for its 2024 and 2025 convertible bonds, with the put dates being extended to 2013 and 2014 respectively and the conversion price being resetted.

This renegotiation is related to the fully underwritten offer of 1,401,780,736 new ordinary shares in the company to raise 18.4 million pounds net of expenses and a share capital reorganisation.

SkyePharma said these shares have been placed by its brokers Piper Jaffray and Credit Suisse and with a number of new and existing strategic and institutional investors.

Dr Ken Cunningham, chief executive officer of SkyePharma, said: “This completes the corporate refinancing of SkyePharma which began shortly after the new team joined in 2006.”

He added his gratitude to the company’s existing and new investors for their participation in the fundraising efforts and said the company is now in a position where it can progress and create value for these shareholders.

Last week, SkyePharma published its financial results for the first six months of the 2008 fiscal year, with the company reporting a 44 per cent increase in revenues to 28.4 million pounds and a 75 per cent drop in operating loss before exceptional items to 2.2 million pounds.